NBFIRA�s proposal stifles domestic capital markets � PwC :: Mmegi Online

A proposed horizon to 2050 for local fund managers to scale down offshore investments to a ceiling of 30 percent has the potential to stifle development of domestic capital markets, economic analysts say.

Due to a thin local capital market, regulators currently allow fund managers to invest up to 70 percent of their funds offshore. The Non-Bank Financial Institutions Regulatory Authority (NBFIRA) however, hopes to change the law to 70% domestic and 30% offshore by 2050.

In a research report titled, Africa Asset Management 2020, accounting firm PwC said on the back of a stable political environment and a solid regulatory framework, Botswana’s financial sector seems to be well set for growth. However, the report contends that the long timeline under NBFIRA’s proposal coupled with a high wealth distribution inequality in Botswana are two factors that could frustrate the development of the local capital markets.

Already have an active account? Log in here.

Or Sign up and get unlimited access to premium articles.

Explore

More

NBFIRA�s proposal stifles domestic capital markets � PwC

A proposed horizon to 2050 for local fund managers to scale down offshore investments to a ceiling of 30 percent has the potential to stifle development of domestic capital markets, economic analysts say.

selefu

Tribunal cancels P1.8bn tender

Khama IV finally breaks BaNgwato royal jinx

May we borrow your youth?

Boko’s fiscal path takes shape

BDP was never a liberation movement

Housing provision tops Boko’s priorities

Boko ‘mute’ on immediate promises

The corrupt must be punished